By: Mahmoud Gamal
Dubai –Mubasher: Recent news about a new merger has pushed traders to increase their positions in the UAE's banks sector; this has followed news that the National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) were in talks over a possible merger, analysts told Mubasher.
Arqaam Capital, the specialist emerging markets investment bank, has projected a possible merger between both Union National Bank (UNB) and Abu Dhabi Commercial Bank (ADCB).
Global events, including the speech of the US Federal Reserve Chair Janet Yellen and the Brexit voting, will push investors to be more cautious, while speculators will continue to build up further positions as shares have reached attractively low prices, said capital market analyst Salem Al-Neiwary.
Small traders will have to hold and not expand positions until key resistance levels of both the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) are broken at 3,350 and 4,600 points respectively, said technical analyst Mohamad Al-Ka’abi.
Translated by: Ingy ElSafy
